This project is being developed by PowerGen, which builds, owns and operates micro-grids in Tanzania and Kenya. Today, PowerGen manages over 3,500 customers across Tanzania and Kenya and plans to scale this up to over 100,000 customers within the next five years.
Customers will be able to pre-pay on a PAYG basis for clean, round-the-clock AC power using their mobile phones under plans to build hundreds of micro-grids in Tanzania using modular micro-grid systems.
The technology is based on a centralised solar PV-battery hybrid system with a distribution grid connecting households in the same village. The system is scalable and low emission, which makes it well-placed to be an integral part of the Kenyan and Tanzanian grids.
The developer aims to finance the first cohort of mini-grid installations themselves, expecting to provide first-time energy access to between 20,000 and 30,000 people in remote areas of Tanzania by 2023.
REPP support will provide financing for environmental and social impact assessments and improved access to investment from impact investors and donors, developing a commercially sustainable financial and business model for mini-grids across the region.
Contracted date: 31 December 2016
Lending type: Development capital
REPP funding: USD $345,000
PowerGen is committed to transforming lives by providing access to clean and reliable energy, while simultaneously helping to build the energy system of the future in Africa. With REPP’s support we are able to move this important work forward further and faster by overcoming some of the barriers that would otherwise hinder progress.- Aaron Cheng, President, PowerGen